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To: gdichaz who wrote (20761)	1/4/1999 2:07:00 PM
From: bananawind	Respond to of 152472

To all, watch out baby bells.... January 4, 1999 New rate plans spur landline replacement BOSTON—New all-inclusive wireless rate plans are signalling the beginning of landline replacement, according to the third in a series of pricing studies conducted by the Yankee Group. Wireless rates have dropped an average of 40 percent between early 1995 and the third quarter of 1998, triggering average usage levels of 300 minutes to 400 minutes of use per month for digital cellular and personal communications services, said the report. That is more than triple the historic industry average usage of 100 minutes per month. Average monthly landline usage is about 1,000 minutes per month, said the report. ‘‘Landline displacement stories are becoming more than an occasional anecdote, as these roam- and long-distance-free price plans compare quite favorably to some pay phone, calling card and even landline intraLATA long-distance rates—especially considering the added convenience of mobility,'' said Mark Lowenstein, senior vice president at the Yankee Group. The Yankee Group predicts displacement from wireline to wireless begins to occur when the wireless to wireline price ratio is 3-to-1 or less. In order to benchmark wireless to wireline pricing, the Yankee Group modified its pricing model to compare the all-inclusive and standard wireless rate plans to local and long-distance wireline rates in eight U.S. cities. Landline migrations begins between 500 and 750 minutes of use for users on all-inclusive plans, said the study. Displacement also can occur at even lower usage levels, such as when wireless long-distance usage is high or when users make use of the large home calling areas for wireless compared with wireline. RCR NEWS

To: gdichaz who wrote (20761)	1/4/1999 2:12:00 PM
From: bananawind	Respond to of 152472

To all... Iusacell growing faster than expected in Mexico... Grupo Iusacell announces plans for more financing MEXICO CITY—Grupo Iusacell has announced plans to obtain about $60 million in equity infusions from its two major shareholders, Bell Atlantic Corp. and the Peralta Group, during the next several months. ‘‘The capital will fund additional analog and [Code Division Multiple Access] network investments and handset purchases needed to support higher than expected cellular net additions, growing demand for digital (wireless) services and network expansion to support long-distance opportunities,'' the company said. The shareholder equity infusion will be implemented by two draw-downs from a $150 million Bell Atlantic subordinated debenture facility, of which Grupo Iusacell tapped another $71.5 million this fall. Bell Atlantic subsidiaries own 47 percent of the Mexican carrier's stock. After each new draw-down, Bell Atlantic debentures will be converted into Grupo Iusacell Series A stock at 70 cents per share. Under an agreement reached in August, the Peralta Group must buy half of these shares from Bell Atlantic at the conversion price of 70 cents each. Bell Atlantic announced it would invest in the Mexican telecommunications operator in October 1993. Latest Issue